⁍ Daniel Loeb’s hedge fund Third Point LLC took new positions in technology companies including Alibaba and Amazon.
⁍ The billionaire investor who founded Third Point a quarter century ago also told clients in a letter that he bought a stake in The Walt Disney Co.
⁍ Loeb said Third Point bought great companies at attractive prices and is betting on Disney which is in the throes of a big change.
– Daniel Loeb is back at the helm of Third Point, the hedge fund he founded 25 years ago, and the billionaire investor says he’s made some big moves after taking back sole control in May, Reuters reports. In a letter to clients seen by the news agency, Loeb says the firm has made new investments in companies including Amazon, Alibaba, and Netflix, and that the company’s “dominant position in the global media landscape sets up the company to take a meaningful chunk of the growing DTC streaming market.” Loeb says revenue could grow to $500 billion over a growing market of 750 million broadband homes outside of China. The investments reflect change at Third Point as well where Loeb, who founded the firm 25 years ago, took back sole control of the portfolio in May following double-digit losses earlier in the year amid panic selling sparked by the Coronavirus. The firm’s Third Point Offshore portfolio climbed 10.8% in the second quarter and gained more in July to trim the year-to-date loss to 3.7% at the end of July. The firm also said it took a new equity position in US utility Pacific Gas & Electric as it was emerged through a PIPE transaction. Loeb said that while shares have traded lower, he expects the sharp discount to shrink as the company finds new investors and a permanent chief executive officer. Third Point’s investment in British insurer Prudential, where it is calling for a breakup of its US and Asia operations, ranked as one of the quarter’s biggest winners.
Source: https://www.reuters.com/article/us-hedgefunds-thirdpoint/third-point-takes-new-positions-in-tech-stocks-trims-earlier-losses-idUSKCN2522AY